1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ksju [112]
4 years ago
12

An insurance agent is trying to sell you an immediate- retirement annuity, which for a single amount paid today will provide you

with $12,000 at the end of each year for the next 25 years. You currently earn 9% on low-risk investments comparable to the retirement annuity. Ignoring taxes, what is the most you would pay for this annuity?
Business
1 answer:
pav-90 [236]4 years ago
3 0

Answer:

present value = 24790.35

Explanation:

given data

amount paid today = $12,000

time = 25 year

rate = 9 %

solution

we get here present value that is express as

present value = future value ÷ (1+rate)^{time}    ............................1

here future  value is = amount paid today  × time period

Future value =$12,000  × 25  = $300000

so present value = \frac{300000}{(1+0.09)^{25}}

present value = 24790.35

You might be interested in
In order to receive payment from the recovery fund in Illinois, the suit against the alleged violator must be filed within how m
Norma-Jean [14]

Answer:

2 years

Explanation:

According to the PROFESSIONS, OCCUPATIONS, AND BUSINESS OPERATIONS 225 ILCS 454/20-90, it is stated that "No action for a judgment that subsequently results in a post-judgment order for collection from the Real Estate Recovery Fund shall be started later than 2 years after the date on which the aggrieved person knew, or through the use of reasonable diligence should have known, of the acts or omissions giving rise to a right of recovery from the Real Estate Recovery Fund." Therefore in order to receive payment the suit must be filed within 2 years of the violation's occurrence.

8 0
3 years ago
The finance team of a concert venue is drafting budget for succeeding year. Arrange the steps in preparing a budget
RoseWind [281]

Answer:did you ever get an answer because I don’t know.

Explanation:

5 0
3 years ago
Which book did frederick w. taylor write to discuss business efficiency? the theory of the leisure class wealth of nations promi
Novay_Z [31]
The correct answer is option D.
6 0
3 years ago
Read 2 more answers
Suppose that the Bank of Oranges has excess reserves of $80,000,000 and checkable deposits of $500,000,000. If the bank has a re
Artyom0805 [142]

Answer:

Option (A) $130,000,000

Explanation:

Data provided in the question:

Excess reserves = $80,000,000

Checkable deposits = $500,000,000

Reserve requirement by the bank = 10%

Now,

The bank’s total amount of reserves will be

⇒ Reserve requirement ×  Checkable deposits

or

= 10% × $500,000,000

= 0.10 × $500,000,000

= $50,000,000

Hence,

the total amount of reserve = Required reserve + Excess reserves

= $80,000,000 + $50,000,000

= $130,000,000

Option (A) $130,000,000

7 0
3 years ago
When you've provided goods or services to customers, which of the following should
hammer [34]

Answer:

your time

Explanation:

you didn't list the answers but if I was to take a guess I would say charge for time

4 0
3 years ago
Read 2 more answers
Other questions:
  • (Ignore income taxes in this problem.) Avanca Fitness Center is considering an investment in some additional weight training equ
    6·1 answer
  • a firm decided to spent 2% of its profit onn free education to the children of nearby area. indicate the value involved in this
    13·1 answer
  • Determine the amount of depletion expense that would be recognized on the Year 1 income statement for each of the two reserves,
    11·1 answer
  • CEOs are limited in making policy changes regarding climate change by all of the following EXCEPT __________.
    10·1 answer
  • Robert needs his daily fix of coffee in the mid-afternoon and visits different coffee shops that will give him as much utility a
    7·1 answer
  • What encourages
    14·2 answers
  • Difference between listening and hearing?​
    11·2 answers
  • Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
    9·1 answer
  • Ortega Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as foll
    11·1 answer
  • The major difference between the service life of an asset and its physical life is that
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!